SOP Library
SOP NO:
FS-GP09
(List of Exhibits/Attachments)
Missi
on
:
Finance and Administration
Area:
Financial Services (FS)
Activity:
General Accounting Plan (FS-GP)
Title:
SOP on GTLI/GAIP Premium Payment System
Date Approved/Issued:
04/01/1993
Date Effective:
04/01/1993
Digest:
I. TERMS OF REFERENCE
A. Rationale
B. Objective
C. Scope
D. Basis
II. IMPLEMENTING GUIDELINES
A.
GTLI/GAIP Premium
1. The Group Term Life Insurance (GTLI)/Group Accident Insurance Program (GAIP) annual premium shall be shared equally by the NFA and the employee.
2. Since payment of the premium shall be effected at the Central Office, the NFA share shall be included initially in the HRMD Budget.
Subsequent allocation of the insurance premium expense shall be made upon payment to the insurance company.
3. The employee counterpart of the GTLI/GAIP premium shall be paid thru the payroll deduction system.
B.
Deduction of Employee Share of the GTLI/GAIP Premium
1. The Chief of the Manpower Services Division (DMS-HRMD) for Central Office employees/Regional Administrative Officer IV or Provincial Administrative Officer III for field office Accounting Division (DAB; cc: MSD)/field office accounting unit a copy of the masterlist for the GTLI/GAIP coverage per classification on or before the 30th day of September of each year.
2. Based on the Masterlist data, deduction of the employee share of the insurance premium shall be effected on the October payroll.
3. In case of employees excluded from the October payroll, direct payment to the NFA collecting officer shall be adopted. The COAD/Accounting unit shall furnish the HRMD/field office Administrative Officer (AO) with the
list of employees without GTLI/GAIP premium deduction
not later than October 16.
The HRMD/Regional or Provincial AO shall advise the employee to pay the
personal share of the GTLI/GAIP premium to the NFA collecting officer on or before the 25th day of October.
Failure to make the payment shall mean exclusion of the employee in the GTLI/GAIP coverage.
The employee shall immediately give the functional copy of the official receipt to HRMD/field office AO and advise COAD/Accounting unit of any payment made.
4. It shall be the responsibility of the employee to ensure that payment of his personal share whether thru the payroll deduction or direct payment system is effected.
5. The Masterlist shall be adjusted to exclude those employees without premium deduction who failed to pay the personal share of the insurance premium to the NFA collecting officer. Adjustments shall be made by the HRMD/field office AO in coordination with COAD/field office Accounting unit. Ruled-out entries shall be signed by the Chief of the Manpower Services Division/field office AO.
C.
Remittance of Premium Deducted from Field Office Employees
1. Payment to the insurance company of the field office employee share of the GTLI/GAIP premium shall be effected thru a regionalized payment scheme.
2. Only one check shall be issued by the regional office to cover the premium counterpart of all regional and provincial office personnel.
3. Remittance to the Regional Office of the provincial personnel share of the premium shall be effected thru the usual disbursement voucher and check payment systems.
A check payable to the NFA-Regional Office (GTLI/GAIP Premium-
Provincial Office
employees' share) shall be issued by the provincial office for the total premiums deducted from the payroll and those paid thru the collecting officer with official receipts.
The check with the adjusted masterlist shall be forwarded to the Regional Office on or before the 31st day of October. A copy of the official receipt shall be given to the Regional Office AO.
4. The Regional Office check payable to the insurance company (GTLI/GAIP premiums - Region ___ Employees' share) shall cover the total premiums deducted from the regional office personnel, those paid directly to the collecting officer by the regional office employees excluded from the payroll and the remittances received from all the provincial offices.
5. A certified xerox copy of the check together with the adjusted Masterlist of GTLI/GAIP coverage per classification of the region shall be forwarded to the DMS-HRMD on or before the 7th day of November.
The check shall be forwarded to the Cash Division-DTFM on or before November 7 for subsequent payment to the insurance company.
D.
Receipt of Field Office Remittance
1. The Cash Division shall issue an
acknowledgement receipt for the check representing the field office GAIP/GTLI premium-employees' share
. This shall be signed by Chief of the Cash Division. A copy thereof shall be forwarded to the DMS-HRMD.
These field office checks shall be paid to the insurance company simultaneously with the Central Office payment.
E.
Payment to the Insurance Company
1. Based on the adjusted masterlists of GTLI/GAIP coverage for Central/Regional/Provincial Office employees, HRMD shall prepare a disbursement voucher to cover Central Office payment to the insurance company for the GTLI/GAIP premium-Central Office employees' share (amount deducted from payroll and those directly paid to the Central Office collecting officer) and NFA counterpart of the premiums for Central/Regional/Provincial Office personnel. The voucher shall be forwarded to the COAD on or before November 15 for processing.
2. Usual disbursement voucher and check preparation systems shall be effected. Processed voucher shall be forwarded to the DTFM at least seven (7) working days before the deadline of payment to the insurance company.
3. The Cash Division shall effect payment to the insurance company of the Central Office check and those from the field offices on or before the deadline for the premium payment per HRMD notification. The insurance company shall issue an official receipt for each check.
4. The Cash Division shall be responsible for the safekeeping of the official receipts issued by the insurance company. The Cash Division shall notify the field offices of the insurance company receipt of payment for the employee share of the GTLI/GAIP premium (Exhibit 4 - cc: DMS-HRMD).
F.
Liability of the Employee(s) Who Caused Delay in the GTLI/GAIP Premium Payment which
Resulted in the Coverage Exclusion of NFA Personnel
The Employee(s) who caused delay in the GTLI/GAIP premium payment which
resulted in the exclusion of NFA personnel in the coverage shall be answerable for the insurance claims of the excluded employees.
III. RESPONSIBILITIES
IV. FLOW CHART
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EXHIBITS
Employees Without GLI/GAIP Premium Deduction
Payment of GTLI/GAIP Premium (Employees Share)
AR for FO GTLI/GAIP Premium-Employee Share